Costco Wholesale Corporation $COST Stock: Fort Washington Investment Advisors Inc. OH Grows Position

Key Points

• Institutional ownership increased: Fort Washington Investment Advisors raised its Costco position by 125.2% in the third quarter to 14,285 shares valued at approximately $13 million. Institutional investors and hedge funds collectively own 68.48% of the company.
• Strong quarterly performance: Costco reported adjusted EPS of $6.75, beating estimates of $6.54, while revenue rose 11.1% year over year to $95.72 billion. Analysts expect approximately $22.70 in EPS for the current year.
• Valuation remains a concern despite a dividend: Shares traded near $978 with a P/E ratio of 47.11, and analyst targets remain mixed, producing a “Moderate Buy” consensus and average target of $1,087.40. Costco declared a quarterly dividend of $1.47 per share, equivalent to a 0.6% annual yield.

Fort Washington Investment Advisors Inc. OH raised its holdings in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 125.2% in the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 14,285 shares of the retailer's stock after buying an additional 7,941 shares during the quarter. Fort Washington Investment Advisors Inc. OH's holdings in Costco Wholesale were worth $13,004,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently modified their holdings of COST. State Street Corp increased its position in Costco Wholesale by 31.7% during the second quarter. State Street Corp now owns 23,901,594 shares of the retailer's stock worth $22,359,224,000 after purchasing an additional 5,749,362 shares during the last quarter. Bank of America Corp DE raised its stake in Costco Wholesale by 11.5% during the first quarter. Bank of America Corp DE now owns 7,515,031 shares of the retailer's stock worth $7,488,203,000 after purchasing an additional 773,651 shares during the period. Corient Private Wealth LLC raised its stake in Costco Wholesale by 838.9% during the fourth quarter. Corient Private Wealth LLC now owns 6,125,405 shares of the retailer's stock worth $5,282,182,000 after purchasing an additional 5,472,968 shares during the period. Invesco Ltd. boosted its holdings in shares of Costco Wholesale by 3.4% in the 4th quarter. Invesco Ltd. now owns 4,328,729 shares of the retailer's stock valued at $3,732,836,000 after purchasing an additional 143,150 shares during the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in shares of Costco Wholesale by 5.5% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,068,312 shares of the retailer's stock valued at $2,870,314,000 after purchasing an additional 160,893 shares during the last quarter. Institutional investors and hedge funds own 68.48% of the company's stock.

Costco Wholesale Trading Down 0.4%

Shares of COST stock opened at $978.01 on Friday. The company has a quick ratio of 0.62, a current ratio of 1.06 and a debt-to-equity ratio of 0.11. Costco Wholesale Corporation has a fifty-two week low of $844.06 and a fifty-two week high of $1,096.50. The firm's 50 day moving average price is $932.33 and its two-hundred day moving average price is $963.09. The stock has a market cap of $433.38 billion, a price-to-earnings ratio of 47.11, a price-to-earnings-growth ratio of 4.20 and a beta of 0.88.

Costco Wholesale (NASDAQ:COST - Get Free Report) last released its quarterly earnings data on Thursday, September 24th. The retailer reported $6.75 earnings per share (EPS) for the quarter, topping the consensus estimate of $6.54 by $0.21. Costco Wholesale had a net margin of 3.04% and a return on equity of 27.60%. The company had revenue of $95.72 billion during the quarter, compared to analyst estimates of $94.97 billion. During the same quarter in the prior year, the business earned $5.87 earnings per share. The business's quarterly revenue was up 11.1% compared to the same quarter last year. On average, analysts anticipate that Costco Wholesale Corporation will post 22.70 EPS for the current year.

Costco Wholesale Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, November 13th. Shareholders of record on Friday, October 30th will be paid a dividend of $1.47 per share. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date is Friday, October 30th. Costco Wholesale's payout ratio is currently 28.32%.

Key Headlines Impacting Costco Wholesale

Here are the key news stories impacting Costco Wholesale this week:

• Positive Sentiment: Major price-target increase: Tigress Financial raised its COST price target from $1,065 to $1,250 and assigned a “buy” rating, implying substantial potential upside. Costco analyst price target report
• Positive Sentiment: Strong operating momentum: Costco reported September net sales of $30.02 billion, up 13% year over year, while digitally enabled sales increased 19%. The results support the strength of its membership model and e-commerce business. Costco September sales report
• Positive Sentiment: Defensive positioning: Higher-than-expected inflation has encouraged investors to favor retailers selling essential goods. Costco benefited from this rotation alongside Walmart and Target. Retail defensive-sector rotation
• Positive Sentiment: Dividend and expansion: Costco declared a quarterly dividend of $1.47 per share, payable November 13. Proposed new warehouses in Oakland and Merced County also point to continued long-term store expansion. Costco dividend announcement
• Neutral Sentiment: Analysts continue to expect earnings growth, with one estimate for fiscal 2027 EPS raised to $22.80. However, commentary describing COST as a portfolio-risk amplifier suggests investors remain focused on its correlation with the broader market and premium valuation. Costco market risk analysis
• Negative Sentiment: Valuation and insider selling: Costco trades at a high earnings multiple, leaving the stock vulnerable to disappointment in membership, sales or consumer spending trends. Separately, EVP William Richard Wilcox sold 1,100 shares worth approximately $1.05 million, reducing his position by 26.23%. Costco insider sale report

Analysts Set New Price Targets

A number of analysts have recently commented on the company. Roth Capital restated a "sell" rating and set a $781.00 price objective on shares of Costco Wholesale in a report on Friday, September 25th. Citigroup assumed coverage on Costco Wholesale in a research report on Thursday, June 18th. They issued a "neutral" rating and a $1,020.00 target price on the stock. Truist Financial reduced their target price on Costco Wholesale from $1,011.00 to $955.00 and set a "hold" rating on the stock in a report on Friday, September 25th. Freedom Broker lowered their price target on Costco Wholesale from $1,030.00 to $1,010.00 and set a "buy" rating for the company in a research report on Friday, September 25th. Finally, Raymond James Financial lowered their price target on Costco Wholesale from $1,100.00 to $1,050.00 and set an "outperform" rating for the company in a research report on Friday, September 25th. Twenty-four analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $1,087.40.

Insider Transactions at Costco Wholesale

In other news, EVP William Richard Wilcox sold 1,100 shares of the business's stock in a transaction on Tuesday, October 13th. The shares were sold at an average price of $958.21, for a total transaction of $1,054,031.00. Following the transaction, the executive vice president directly owned 3,094 shares of the company's stock, valued at approximately $2,964,701.74. The trade was a 26.23% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Claudine Adamo sold 2,200 shares of the company's stock in a transaction on Tuesday, September 29th. The shares were sold at an average price of $915.93, for a total transaction of $2,015,046.00. Following the completion of the transaction, the executive vice president owned 7,134 shares of the company's stock, valued at $6,534,244.62. This trade represents a 23.57% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.10% of the company's stock.

Costco Wholesale Profile

Costco Wholesale Corporation operates a membership-based warehouse retail business under the Costco name. The company sells a broad selection of merchandise, including groceries, fresh foods, beverages, appliances, electronics, furniture, apparel, jewelry, hardware, and seasonal products. It also offers services such as gasoline, pharmacies, optical departments, hearing-aid centers, food courts, travel services, and business delivery in selected markets.

Costco markets many products under its private-label Kirkland Signature brand and sells merchandise through warehouse locations and e-commerce platforms.

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